Microgrids are becoming an increasingly attractive option due to their numerous benefits, such as the ability to operate both in islanded and grid connected modes of operations. However, the integration of converter-interfaced distributed generation in microgrids has raised several issues, such as the fact that fault currents in these systems in islanded mode are much less than those in grid connected microgrids. Therefore, microgrid protection schemes require a fast, reliable, and robust communication system, with backup, to automatically adjust relay settings for the appropriate current levels according to the microgrid's mode of operation. However, the risk of communication link failures and cyber security threats, as well as the high costs involved to avoid them, are the major challenges for the implementation of an economic adaptive protection scheme.